1 Exampromax - Stuvia US 2025/2026
CPSM Exam 1 - Sourcing Questions and 100%
Correct Answers Already Graded A+
Q: A supply manager is assigned the responsibility to define a sourcing strategy
for an organization whose products are highly complex and demand a high level
of quality. Production downtime can result in the organization paying customers
for late or missed deliveries. When developing the sourcing strategy, which is
the MOST important item to start with:
A. Investigating existing versus new sources
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Exampromax - Stuvia US
B. Determining the availability of the market's high quality potential suppliers
C. Investigating alternative and backup supplier requirements
D. Identifying key stakeholders
Ans: D - Is correct because stakeholders have the most vested interest in any
sourcing strategy. They define actual needs that need to be sourced.
Q: The central sourcing manager in a multi-site organization is reviewing
requirements for a new telephone system with the operations manager at one
of the sites. The operations manager has an established budget and has
selected a system. However, the purchase falls outside of the site's purchasing
authority, so the approval of the central sourcing manager is required. Which of
the following steps should the central sourcing manager take next?
A. Make the specifications generic and send invitations to bid to multiple
suppliers
B. Send invitations to bid to suppliers of the desired system
C. Verify that the site manager's needs are consistent with the organization's
strategy
D. Check with external stakeholders to determine if the new telephone system
is required.
, 2 Exampromax - Stuvia US 2025/2026
Ans: C - When developing sourcing plans, the budget, operations requirements, and
strategic objectives must be considered.
Q: VWX, INC. is a large food manufacturer. As part of a social responsibility
initiative, VWX decides to phase out the purchase of a sugar substitute within
three years. After this initiative is announced, VWX's marketing department
identifies a potential market for low calorie snacks. The marketing department
decides to pilot a small batch production of these snacks. When the
specifications for the new product are sent to supply management to execute
the sourcing strategy, the supply manager realizes that the specifications call for
a sugar substitute. Which of the following is MOST likely the cause of this
conflict?
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A. The marketing department's decision is inconsistent with the company's
Exampromax - Stuvia US
strategic goal.
B. Not all internal stakeholders were properly engaged in the development of
the specifications.
C. The marketing department failed to consider the external stakeholders needs
during the development of the specifica
Ans: A. Sourcing strategies are executed based on organizational goals.
Q: A Supply manager is preparing for negotiations with a business consulting
supplier. The supplier provides services to Information Technology and
corporate headquarters, and has frequent interactions with a number of people
across the company, including executive staff. Which of the following is the
BEST course of action for the supply manager to take?
A. Set up meeting with all the key stakeholders to discuss the upcoming
negotiations and what they should say, and send a follow-up email to all
attendees plus those who could not attend.
B. Send an email to all employees, letting them know that negotiations are
being conducted with this supplier, and that no one should have any interaction
with the supplier while negotiations continue.
, 3 Exampromax - Stuvia US 2025/2026
C. Contact the head of each department and explain that negotiations will be
conducted with the supplier, and ask the department heads to share the
information with their teams.
D. St
Ans: A - Allows for the supply manager to share the purpose behind the negotiation
and obtain business buy-in.
Q: BCD Fashion Inc. is preparing to launch a new product line consisting of high-
profile fashion items. The firm has conducted extensive market research, and a
rapidly growing demand for these items has been identified. BCD's supply
management department has developed a sourcing plan based on input from
design, marketing, and senior management.
© 2025 Assignment Expert
Exampromax - Stuvia US
In preparation for launch, the supply management department ensures that
BCD's suppliers are adequately equipped to handle the quickly shifting demand.
However, when the product line launches, deliveries to retail locations
experience delay. BCD's supply manager discovers that the firm's main logistics
provider was not expecting an influx in shipment quantity. Which of the
following is MOST likely the cause of the problem?
A. Internal stakeholders were not fully engaged.
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu
Ans: B - All internal stakeholders were engaged and market research was adequately
conducted; however, one key external stakeholder (trucking companies) was not
engaged about the launch of the new product line.
Q: The chief procurement officer (CPO) for a manufacturing company is
informed by the CEO that the procurement team is not adding value or helping
the firm meet strategic goals. The CPO is committed to delivering value for the
organization. Given this situation, which of the following is the FIRST step the
CPO should take in ensuring the success of the procurement team?
CPSM Exam 1 - Sourcing Questions and 100%
Correct Answers Already Graded A+
Q: A supply manager is assigned the responsibility to define a sourcing strategy
for an organization whose products are highly complex and demand a high level
of quality. Production downtime can result in the organization paying customers
for late or missed deliveries. When developing the sourcing strategy, which is
the MOST important item to start with:
A. Investigating existing versus new sources
© 2025 Assignment Expert
Exampromax - Stuvia US
B. Determining the availability of the market's high quality potential suppliers
C. Investigating alternative and backup supplier requirements
D. Identifying key stakeholders
Ans: D - Is correct because stakeholders have the most vested interest in any
sourcing strategy. They define actual needs that need to be sourced.
Q: The central sourcing manager in a multi-site organization is reviewing
requirements for a new telephone system with the operations manager at one
of the sites. The operations manager has an established budget and has
selected a system. However, the purchase falls outside of the site's purchasing
authority, so the approval of the central sourcing manager is required. Which of
the following steps should the central sourcing manager take next?
A. Make the specifications generic and send invitations to bid to multiple
suppliers
B. Send invitations to bid to suppliers of the desired system
C. Verify that the site manager's needs are consistent with the organization's
strategy
D. Check with external stakeholders to determine if the new telephone system
is required.
, 2 Exampromax - Stuvia US 2025/2026
Ans: C - When developing sourcing plans, the budget, operations requirements, and
strategic objectives must be considered.
Q: VWX, INC. is a large food manufacturer. As part of a social responsibility
initiative, VWX decides to phase out the purchase of a sugar substitute within
three years. After this initiative is announced, VWX's marketing department
identifies a potential market for low calorie snacks. The marketing department
decides to pilot a small batch production of these snacks. When the
specifications for the new product are sent to supply management to execute
the sourcing strategy, the supply manager realizes that the specifications call for
a sugar substitute. Which of the following is MOST likely the cause of this
conflict?
© 2025 Assignment Expert
A. The marketing department's decision is inconsistent with the company's
Exampromax - Stuvia US
strategic goal.
B. Not all internal stakeholders were properly engaged in the development of
the specifications.
C. The marketing department failed to consider the external stakeholders needs
during the development of the specifica
Ans: A. Sourcing strategies are executed based on organizational goals.
Q: A Supply manager is preparing for negotiations with a business consulting
supplier. The supplier provides services to Information Technology and
corporate headquarters, and has frequent interactions with a number of people
across the company, including executive staff. Which of the following is the
BEST course of action for the supply manager to take?
A. Set up meeting with all the key stakeholders to discuss the upcoming
negotiations and what they should say, and send a follow-up email to all
attendees plus those who could not attend.
B. Send an email to all employees, letting them know that negotiations are
being conducted with this supplier, and that no one should have any interaction
with the supplier while negotiations continue.
, 3 Exampromax - Stuvia US 2025/2026
C. Contact the head of each department and explain that negotiations will be
conducted with the supplier, and ask the department heads to share the
information with their teams.
D. St
Ans: A - Allows for the supply manager to share the purpose behind the negotiation
and obtain business buy-in.
Q: BCD Fashion Inc. is preparing to launch a new product line consisting of high-
profile fashion items. The firm has conducted extensive market research, and a
rapidly growing demand for these items has been identified. BCD's supply
management department has developed a sourcing plan based on input from
design, marketing, and senior management.
© 2025 Assignment Expert
Exampromax - Stuvia US
In preparation for launch, the supply management department ensures that
BCD's suppliers are adequately equipped to handle the quickly shifting demand.
However, when the product line launches, deliveries to retail locations
experience delay. BCD's supply manager discovers that the firm's main logistics
provider was not expecting an influx in shipment quantity. Which of the
following is MOST likely the cause of the problem?
A. Internal stakeholders were not fully engaged.
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu
Ans: B - All internal stakeholders were engaged and market research was adequately
conducted; however, one key external stakeholder (trucking companies) was not
engaged about the launch of the new product line.
Q: The chief procurement officer (CPO) for a manufacturing company is
informed by the CEO that the procurement team is not adding value or helping
the firm meet strategic goals. The CPO is committed to delivering value for the
organization. Given this situation, which of the following is the FIRST step the
CPO should take in ensuring the success of the procurement team?
